What is net metering?
Net metering is a billing mechanism that allows individuals and businesses that generate their own electricity from renewable energy sources, such as solar panels, to sell excess electricity back to the grid. Here's how it works:
Generation of Electricity: When a solar panel system generates more electricity than is needed on-site, the excess electricity is fed back into the grid.
Metering: A bidirectional meter tracks the amount of electricity consumed from the grid and the amount of excess electricity fed back into the grid.
Credit for Excess Electricity: The excess electricity exported to the grid is credited to the customer's account. This credit can be used to offset electricity consumption from the grid when the solar panels are not generating enough electricity to meet the demand.
Billing: At the end of a billing period (usually monthly), the customer is billed only for the "net" energy consumed from the grid. This is the difference between the electricity consumed from the grid and the electricity generated by the customer's solar panels that was exported to the grid.
